Global crude prices plunged as much as 14 per cent on Monday after rising one per cent earlier in the day, following US President Donald Trump’s statement that he has directed the American military to hold off strikes on Iranian power plants and energy infrastructure for at least five days. The development comes, Trump said, after the two sides held “productive” and “very good” talks for the past couple of days.
“Based On The Tenor And Tone Of These In Depth, Detailed, And Constructive Conversations, Witch Will Continue Throughout The Week, I Have Instructed The Department Of War To Postpone Any And All Military Strikes Against Iranian Power Plants And Energy Infrastructure For A Five Day Period, Subject To The Success Of The Ongoing Meetings And Discussions,” the 79-year-old US president said in a post on Truth Social.
According to AFP, international benchmark Brent North Sea crude reduced by 6.7 per cent to USD 104.70 per barrel at around 1145 GMT. Similarly, the main US oil contract West Texas Intermediate plunged 6.9 per cent to USD 91.41 per barrel after rising to USD 100.
Stock markets rebound
Trump’s statement also had a positive impact on stock markets across the world. AFP reported that European markets turned higher, though they had declined about 2.5 per cent earlier in the day. In Germany’s Frankfurt, the stock market rebounded by 1.5 per cent nearing midday.
In France’s Paris, the market also increased by around one per cent. However, London’s FTSE 100 index, weighed by sharp losses for energy heavyweights BP and Shell, was flat., reported AFP.
But Trump’s statement didn’t have an impact in India, as it was issued after the stock market closed for the day. On Monday, the 30-share BSE Sensex had plunged by 1,836.57 points, or 2.46 per cent, to settle at 72,696.39. Similarly, the 50-share NSE Nifty reduced 601.85 points, or 2.60 per cent, to end at 22,512.65.
From the 30-Sensex firms, Titan tumbled the most by 6.24 per cent. Trent, UltraTech Cement, Bharat Electronics, InterGlobe Aviation, Tata Steel, and HDFC Bank were also among the major laggards. HCL Tech, Power Grid, Infosys, and Tech Mahindra were the winners.
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